Citi and Swift Test Settlement Between Fiat and Digital Currencies

Citi and Swift have successfully trialed a Payment-versus-Payment (PvP) workflow that synchronizes settlements between traditional fiat currencies and digital tokens. The experiment Leveraged Swift’s existing network, augmented with blockchain tools like escrow services and orchestrators, to manage both legs of cross-currency transactions seamlessly.

The trial demonstrates that legacy banking infrastructure can integrate with blockchain networks without requiring a wholesale replacement of either system. By using Swift as the communication LAYER and adding blockchain connectors and smart contracts, the test achieved synchronized settlement—a critical step toward standardizing processes for digital-asset transactions amid growing stablecoin and tokenization activity.

"This represents a significant leap forward in developing the infrastructure needed to support digital currency transactions," said Ayesa Latif, Citi’s Head of FX Products. The results highlight how traditional financial systems can adapt to enhance speed and transparency when handling digital assets.